TOO

MLP Speak: A Critique of Distributable Cash Flow

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–> Handout 1: Pitfalls of Distribution Yield Analysis (pdf) –> Handout 2: Linking P/DCF to Enterprise Free Cash Flow Valuation (pdf) Let’s talk about a controversial metric that is used in master limited partnership (MLP) reporting. Just how useful is it, and should it be allowed? By Brian Nelson, CFA It’s been a few years since the fallout in the prices of most master limited partnerships (AMLP), but to me, it still feels like yesterday. We continue to have many concerns about the longevity of the business models of MLPs, and we maintain our view that the operating structure will be challenged over the long haul. New equity and debt funding (issuance) continues to, in part, fuel the distributions of most MLPs, … Read more

Taxes and the Distressed MLP Investor

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Image show above: Performance of the Alerian MLP ETF. “Perhaps the worst thing about MLPs is that investors can spend more time doing and thinking about tax-related items than actually evaluating the businesses of the underlying entities. This could result in poor investment decisions.” – Brian Nelson, CFA By Brian Nelson, CFA What a sensitive topic for many… Our team presented at the Chicago chapter of the American Association of Individual Investors (AAII) last weekend. It is always an honor and a privilege to have the opportunity to present to such wonderful people! They ask so many great questions. (By the way, I’m working on my schedule for 2017, so if you’d like our team to speak on a topic … Read more

MLPs: Circular Flow of Unsubstantiated Support Evaporating

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Pictured: The circular flow of unsubstantiated support that continues to unravel, previously supporting the prices of the MLP universe. Image published June 18, 2015. © Valuentum Securities. The image above was taken from Valuentum’s President Brian Nelson’s article published on valuentum.com/ June 18.  Forward-looking, cash-flow based dividend analysis has proven its worth once again. Shipping giant Teekay LNG Partners (TGP) made a tidal wave in its stock recently, knocking income investors over, after it cut its distribution by 80% December 17 in order to fund capital requirements on its future growth projects, reduce debt, and eliminate its need to access equity capital markets in the near term. The Valuentum thesis on MLPs continues to suggest that distributions related to the business model continue to be fueled … Read more

Dividend Increases for the Week Ending October 2

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Below we provide a list of firms that raised their dividends during the week ending October 2. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Adcare Health Systems (ADK): now $0.06 per share quarterly dividend, was $0.055. American Financial (AFG): now $0.28 per share quarterly dividend, was $0.25. Bank of the Ozarks (OZRK): now $0.145 per share quarterly dividend, was $0.14. Clarcor (CLC): now $0.22 per share quarterly dividend, was $0.20. DineEquity (DIN): now $0.92 per share quarterly dividend, was $0.875. Enterprise Products (EPD): now $0.385 per share quarterly dividend, was … Read more

Dividend Increases/Decreases for the Week Ending August 4

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Below we provide a list of firms that raised/lowered their dividends during the week ending August 4. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week American States Water (AWR): now $0.255 per share quarterly dividend, was $0.242. Apollo Global Management (APO): now $0.52 per share quarterly dividend, was $0.49. Aqua America (WTR): now $0.2047 per share quarterly dividend, was $0.1913. Bank of Marin Bancorp (BMRC): now $0.29 per share quarterly dividend, was $0.27. Banco Santander (SAN): now $0.056 per share quarterly dividend, was $0.046. Cable One (CABO): now $1.75 per share … Read more